Fidelity Launches FIDD Stablecoin To Challenge Circle’s USDC, Tether’s USDT
Fidelity Investments is launching the Fidelity Digital Dollar (FIDD) stablecoin in early February to compete in the $308 billion stablecoin market dominated by Circle’s (NYSE:CRCL) USDC (CRYPTO: USDC) and Tether’s USDT (CRYPTO: USDT).
FIDD: How It Works
The stablecoin will be issued by Fidelity Digital Assets, a federally chartered national trust bank that received approval from the Office of the Comptroller of the Currency in December.
FIDD is pegged 1-to-1 to the U.S. dollar and backed by cash and short-term U.S. Treasuries.
For every FIDD token in circulation, Fidelity holds $1 in reserves—just like how Circle and Tether back their stablecoins.
The reserves comply with the GENIUS Act, the federal law passed in July that set clear rules for how stablecoin companies must hold and …
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